Middle East Hotel Pipeline Hits Record 710 Projects in Q4 2025, Led by Saudi Arabia and Egypt

Record-Breaking Growth Across the Region

The Middle East hotel construction pipeline reached an all-time high at the end of Q4 2025, totaling 710 projects and 176,402 rooms, according to the latest quarterly report from Lodging Econometrics.

This milestone reflects a 15% year-over-year increase in projects and a 13% rise in rooms, underscoring sustained development momentum across key markets including Saudi Arabia, Egypt, and the United Arab Emirates.

The data confirms that the Middle East remains one of the world’s fastest-growing hospitality development regions.

Strong Activity Across All Development Stages

The Q4 2025 hotel pipeline demonstrates balanced expansion across construction phases:

• Under Construction: 332 projects (84,172 rooms), up 10% year over year

• Scheduled to Start Within 12 Months: 176 projects (54,060 rooms), a record-high room count

• Early Planning: 202 projects (38,170 rooms), reflecting the strongest growth rate at 25% YOY in projects

The significant increase in projects scheduled to break ground signals confidence in medium- and long-term demand fundamentals.

Luxury and Upscale Segments Lead Expansion

Growth was recorded across all chain scales, with premium categories dominating development:

• Luxury: 207 projects (45,780 rooms)

• Upper Upscale: 168 projects (42,376 rooms)

• Upscale: 182 projects (53,155 rooms)

• Upper Midscale: 61 projects (16,248 rooms)

The concentration in luxury and upscale segments highlights the region’s focus on high-end tourism, mega-destination strategies, and international brand expansion.

Renovations and Brand Conversions Reach New Highs

In addition to new builds, hotel renovations and brand conversions surged to record levels, totaling 81 projects and 19,772 rooms in Q4 2025.

This marks a 37% increase in renovation projects and a 46% rise in rooms year over year, reflecting owners’ efforts to reposition existing assets and align with evolving global brand standards.

Saudi Arabia and Egypt Dominate Regional Pipeline

Saudi Arabia remains the clear leader in hotel development, accounting for:

• 394 projects (106,521 rooms)

• 25% growth in projects year over year

• 28% growth in room count

Egypt follows with 140 projects (31,104 rooms), maintaining strong expansion momentum.

The United Arab Emirates ranks third with 104 projects (25,459 rooms), while Oman and Qatar also contribute to regional supply growth.

Riyadh Leads City-Level Development

At the city level, Riyadh tops the pipeline with 107 projects (20,936 rooms), reinforcing its status as a key driver of hospitality expansion under Saudi Arabia’s Vision 2030 framework.

Other major development hubs include:

• Jeddah – 63 projects (14,358 rooms)

• Cairo – 53 projects (11,258 rooms)

• Makkah – 35 projects (22,829 rooms)

• Muscat – 15 projects (2,479 rooms)

These figures demonstrate diversified growth across religious tourism, corporate travel, and mixed-use urban developments.

Hotel Openings and Future Outlook Through 2027

The Middle East recorded 36 new hotel openings (10,104 rooms) in 2025. Looking ahead:

• 93 new hotels (18,511 rooms) are forecast to open in 2026

• 94 new hotels (19,654 rooms) are projected for 2027

The forward pipeline indicates sustained expansion fueled by infrastructure investment, tourism diversification strategies, and international brand participation.

The Q4 2025 pipeline data confirms that the Middle East hospitality sector is entering a new phase of scale and sophistication. With Saudi Arabia and Egypt leading growth, strong luxury development activity, and a rising number of brand conversions, the region is positioned as a global hotspot for hotel investment and tourism-driven expansion.

As large-scale national tourism strategies continue to unfold, the record pipeline suggests long-term confidence in the Middle East’s role as a premier travel and hospitality destination.